SpiceJet to launch Lakshadweep, Ayodhya flights soon; shares fly

SpiceJet share price BSE: SpiceJet shares rose on Thursday after the company said it plans to start flights connecting Lakshadweep as it has exclusive rights for the archipelago Union Territory as part of the government’s regional connectivity drive.The airline also said it plans to connect Ayodhya with different cities soon. The stock of SpiceJet gained as much as 2.9 per cent to Rs 67.4 apiece on BSE, taking its surge to more than 10 per cent in three days and coming within Rs 2 of a 52-week high touched last month. The counter settled at Rs 66.57, down 1.73 per cent on BSE.

At its 39th Annual General Meeting (AGM), held on Wednesday, the airline said it will launch direct flights connecting Agatti Island,  Lakshadweep. Currently, travelers access Lakshadweepvia Kochi in Kerala.  

At the AGM, SpiceJet shareholders approved a proposal to raise Rs 2,250 crore. The proposal was cleared by the board in December.  

SpiceJet CEO Ajay Singh, addressing the shareholders at the AGM, said that the financial infusion will help the airline become stronger and more resilient, and expand its market potential and chances. The new money infusion will also aid in the return of its grounded aircraft, he said. Read more

Here are a few other key pointers from the AGM: 

-Issuance and allotment of 31,83,00,000 equity shares of Rs 10 each at an issue price of Rs 50 apiece on preferential basis 

-Issue and allotment of 13,00,00,000 warrants with an option to apply for and be allotted equivalent number of equity shares of Rs 10 each at an issue price of Rs 50 per share on preferential basis 

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